Southern Bank offers 10% interest and interest is compounded annually. West Bank offers 9% interest and interest is compounded on monthly basis. Both banks return principal and interest at the end of...


Southern Bank offers 10% interest and interest is compounded annually. West Bank offers 9% interest and interest is compounded on monthly basis. Both banks return principal and interest at the end of five years. Which one of the two banks you would prefer to deposit your savings?




A) Southern Bank



B) Western Bank



C) Both are equal and hence indifferent



D) None of the above.




Jun 04, 2022
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